Strategic Cost Management and Performance Evaluation

ICAI has introduced this paper, Strategic Cost Management and Performance Evaluation, at the CA Final level where you will learn about Strategic Cost Management, Strategic Decision Making, Performance evaluation and reporting, Managerial Control and related case studies.

Remember“Great things never come from comfort zones” - Wish you all the best 😉

What is Strategic Cost Management & Performance Evaluation (SCMPE)?

Strategic Cost Management & Performance Evaluation syllabus is designed to blend the concepts of various strategic cost management in short term decision making in connection with business operations and performance-based evaluation for quality control aspects.

Basic concepts of cost & management accounting have already been covered in CA Inter. Therefore, at this level management objectives are studied with cost concepts for better cost control and cost reduction

This paper makes it easy for CAs to internally monitor the organisation’s performance with developed analytical & evaluation skills

What are the topics covered in Strategic Cost Management & Performance Evaluation at CA final Level?

In the old syllabus, it was referred as AMA or advanced management accounting which included many QT topics(Quantitative aptitude). In the new syllabus, except learning curve and LPP, no other QT topics are covered. The intention of ICAI is to cover more topics related to decision making. Though topics in AMA are continued like standard costing, marginal costing etc., emphasis in the new syllabus in this paper is more towards case studies related concepts.

The entire syllabus of Strategic Cost Management & Performance Evaluation is divided into following parts:

Strategic Cost Management

Strategic Decision Making

Performance evaluation and reporting

Managerial Control

Case studies (New)

What is the best approach to study Strategic Cost Management & Performance Evaluation?

As per ICAI, it is not enough for you to apply cost management techniques but also analyse and evaluate the problems.So, it is not enough if you simply solve problems numerically!

Know all the concepts to correctly interpret the question and answer

Read the question properly.Make note of all the numerical data given at the beginning of your solution while reading the question.

Examiners play with English in this paper; it is important to get the question right.

Case studies are something new in costing. Even though they would seem to be lengthy, in most of the cases, you will find a strong hint in the question itself.

Do not skip any chapter because questions can be asked by combining two chapters say, standard costing with learning curve.

In yourstudy material, where you find a complex problem, make a note of the page and refer to it during final revision

Course Content Available

Available Lectures for Strategic Cost Management and Performance Evaluation

Paper 5: Strategic cost management and Performance Evaluation

Chapters

No. of Lectures

Series 1:

Part A: Strategic Cost Management and Decision Making

Chapter 1: Introduction and Marginal Costing Basics

3

Chapter 2: Pricing

3

Chapter 3: Activity Based Costing

4

Chapter 4: Budgetary Control

5

Chapter 5: Transfer Pricing

4

Chapter 6: Relevant Costing

2

Chapter 7: Standard Costing

8

Series 1:

Part B: Performance Evaluation and Control

Chapter 8 : Marginal Costing

5

Chapter 9: Service Costing

3

Chapter 10 : JIT,MRP Etc.,

3

Chapter 11: Assignment (Old Syllabus)

2

Chapter 12: Simulation (Old Syllabus)

2

Series 1:

Part C: Case Study

Chapter 13: Learning Curve

2

Series 1:

Chapter 14 : JIT,MRP Etc.,

4

Chapter 15: Assignment (Old Syllabus)

5

Chapter 16: Simulation (Old Syllabus)

5

Chapter 17: Learning Curve

3

Chapter 18 : Theory

6

Series 2:

Chapter 1: Introduction to Strategic Cost Management

1

Chapter 2: Modern Business Environment

7

Chapter 3: Lean System and Innovation

3

Chapter 4: Cost Management Techniques

4

Chapter 5: Cost Management for Specific Sector

1

Chapter 6: Decision Making

15

Chapter 7: Pricing Decision

3

Chapter 8: Performance Measurement and Evaluation

2

Chapter 9: Divisional Transfer Pricing

5

Chapter 10: Strategic Analysis of Operating Income

8

Chapter 11: Budgetary Control

3

Chapter 12: Standard Costing

6

Chapter 13: Case Study

1

To empower every student aspiring to be a CA, CS or CMA to master all subjects in their curriculum and pass their exams at the first attempt with an easy to use tool which they can use to study anytime anywhere